HMRC’s audacious project of digitising the UK tax system has been hit with a further delay. According to their latest update close to 3 million of the smallest businesses and landlords will not be affected until 2020.
The delay follows on the back of feedback and concerns raised by parliamentarians, businesses, accountants, and professional bodies.
Under the revised timetable, VAT-registered businesses with a turnover above the current threshold of £85,000 will have to keep digital records first, and only for VAT purposes, from 2019.
Self-employed taxpayers, small businesses and landlords will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020.
Responding to the changes, Dishant Desai, Operations Director at QXAS outsourcing, said:
“This is a positive decision. The timetable has changed but the future hasn’t. MTD is still a strategic opportunity for accountants and it isn’t going away. To compete in the era of automation, the ability to change will be the most important business continuity decider. What worked in 2015 will not work in 2020. This extra time must be spent preparing for the technical storm on the horizon.”
Though MTD has been delayed, it is available on a voluntary basis for the smallest businesses. It’s time for accountants to up their game and rather than forgetting about digital tax for another two years, you should think of it as part of changing your professional identity.
To prepare accountants should:
- Think of adoption of technology - software and apps
- Prepare clients and staff
- Become a trusted advisor
If you are not a tech-savvy accountant or if you’d like to better understand how outsourcing can help you weather this storm, call Dishant on 0870 803 1033 or contact us here to for a free initial consultation. We are proficient in the use of various online and cloud tax and accounting software and apps, and can help your accountancy firm transition through these changes.